The crude oil market fell to a 1-month low following a report that the Allied Petroleum Exporting Countries (OPEC+) maintained plans to increase supply production.
OPEC+ agreed to add 400,000 barrels a day of supply in February, which has been maintained since last August.
This situation has affected the movement of the Canadian dollar which is sensitive to the crude oil market.
The Canadian dollar experienced a re -depreciation ending the strengthening exhibited last week which had hit a 3 -week low against the US dollar.
On the price chart of the USD/CAD pair, the price has returned to show a bullish pattern this week after last week's decline hit the level around 1.26200.
The upside was seen earlier this week testing the SBR (support become resistance) zone before the 1.27700 flat price before the flat price movement towards the end of the week.
With the strengthening of the US dollar at the end of the New York session following the reaction to the minutes of the FOMC meeting, the price has risen above the support level of the Moving Average 50 (MA50) on the 1 -hour time frame giving an early signal of a bullish trend change.
Continuing trading in the Asian session this morning (Thursday), the price has moved past the SBR zone of 1.27700 and is expected to move more aggressively in the New York session soon.
The price increase if continued will lead to the level around 1.29000 and the resistance zone tested at the end of last December at 1.29600.
But if the price plummets again, the support zone at 1.26000 will once again be tested like last December's trading close.
The lower decline is likely to be to the 1.25000 level to record the latest 7 -week low.
